China power crisis: thermal coal inventory nears record low as country suffers worst outages in a decade
- State media now says 20 out of 31 provincial jurisdictions have implemented electricity-rationing measures since mid-September
- Total coal inventory at China’s major power-generation groups is just 11.31 million tonnes – enough to meet demand for only about two weeks
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Life with no power: Why some major cities in China are having to ration electricity
In past years, when the calendar turned to September, China’s power-generation groups set out to replenish their coal inventories ahead of the cold winter months.
This year, coal is so scarce that they are struggling to merely keep the lights on. And some are failing even at that.
As of September 21, the total stockpile of thermal coal – used to generate electricity – held by the nation’s six major power-generation groups stood at just 11.31 million tonnes – which is capable of meeting demand for a near-record low period of just 15 days, according to Sinolink Securities.
The inventory of coal-fired power plants in most parts of the country should, in principle, be no less than 20 days’ worth of coal consumption during the off-season, including now, according to China’s top economic planner.
Sinolink Securities also estimates that, from September to February, China will need 1.85 billion tonnes of thermal coal, but projections indicate it will fall short by 222 million to 344 million tonnes – or about 12 to 19 per cent less than is needed.
